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Metgasco seeks compensation from NSW govt

Metgasco is chasing compensation from the NSW government over its suspended coal seam gas drilling licence in northern NSW.

Energy Minister Anthony Roberts suspended the licence in May on the grounds that Metgasco had failed to properly consult the community about its Bentley mine operations in northern NSW.

"Metgasco continues to argue that the government's suspension decision was unlawful and unjustified and has severely damaged its interests," read a statement released on Monday.

"The discussions are confidential ... Metgasco will not comment or speculate on the status or possible outcome of discussions with government."

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Metgasco last month asked for the suspension to be reviewed but the government's decision was upheld.

Metgasco chief executive Peter Henderson last month said: "The prime reasons for the suspension decision appear to have little to do with Metgasco's efforts to consult in good faith with the local community, but rather a concern about protests by activists who demonstrably have no interest in consultation."

He said the government's decision to suspend the firm's drilling licence would send a "very negative message" to other companies wanting to invest in the state.